Yesterday the most volatile currency in the market was the pound, with GBPUSD dropping sharply before recovering, perhaps on the back of news that the UK will offer a resolution soon on the Irish border issue sooner rather than later.
The euro consolidated gains on Wednesday after hitting a six-week high in the previous session as investors waited for fresh catalysts to push the single currency higher.
The dollar recovered slightly on hopes that negotiations between the United States and China would produce a compromise and avoid a full-blown trade war.
But news that U.S. President Donald Trump and German Chancellor Angela Merkel had discussed “joining forces to counter” China’s economic practices and alleged intellectual property theft raised fears that trade tensions could escalate.
The only data of note today is the third estimate of US Q4 GDP. We expect a marginal upward revision from 2.5% (annualised) to 2.6%. The consensus forecast is looking for 2.7%.